RBC Capital initiated formal coverage of Light & Wonder Inc. (NASDAQ:LNW), assigning an outperform rating and establishing a price target of $190.00. The firm says the price objective implies approximately 41% upside from the stock’s current trading level. Mark Wilson is named as the lead analyst on the coverage.
In its analysis, RBC Capital pointed to two company developments it views as materially relevant: Light & Wonder has settled the Dragon Train litigation and has transitioned to a sole primary listing on the Australian Securities Exchange (ASX). The firm said these changes leave the company well positioned to pursue share gains in higher value segments of the gaming market.
Valuation metrics form a central part of RBC Capital’s view. The bank reports that Light & Wonder trades on an FY26e enterprise value to EBITDA multiple of 8.3x after adjusting for stock-based compensation. On an earnings multiple basis, the company sits at a price-to-earnings ratio of 11.5x according to the firm’s calculations. RBC Capital contrasted Light & Wonder’s multiples with those of Aristocrat, which the firm reports trading at 10.5x on an EV/EBITDA basis and 16.7x on a P/E basis on the same respective metrics.
Separately, Light & Wonder announced an amendment to its existing credit agreement that introduces a new tranche of term loans totaling approximately $2.13 billion. Those replacement loans carry a maturity in April 2029 and replace the company’s prior term loans. The amendment also reduces the interest rate margin: loans priced at a term benchmark rate will now have a margin of 2.00% per annum, while loans tied to an alternate base rate will have a margin of 1.00% per annum.
Also noted in recent coverage, Benchmark has raised its price target for Light & Wonder to $110 from $90 while maintaining a Buy rating. Benchmark’s adjustment follows Light & Wonder’s move to a sole standard listing on the ASX. RBC Capital described these items as part of the set of recent financial and strategic adjustments for the company.
Context and implications
The combination of litigation resolution, listing consolidation, updated debt terms and fresh analyst coverage comprises the primary developments described by RBC Capital and other market observers documented in recent reports. Together, these items are presented as factors shaping Light & Wonder’s positioning in the gaming market and its valuation profile as measured against peers.
Note: This report presents the details and figures as stated by RBC Capital and other referenced coverage. It does not add forecasts or assertions beyond the reported metrics and announced company actions.